On Wednesday, Sears Holdings, chain of American department stores announced that it will raise more than $2.5 billion by selling 254 stores to real estate investment trust.

The RETI, Seritage Growth Properties will buy 254 Sears and Kmart locations and then lease them back to the retailer. The retailer will also sell 12 stores to a 50-50 joint venture it was forming with No.2 US mall operator General Growth Properties Inc. Both the companies will hold 50%.

General Growth will pay Sears $165 million in cash for the stake and Sears will lease back store space depending on its requirements.

The deals announced has marked one of the more remarkable moves by company's Chief Executive Officer Eddie Lampert in an a bid to reshape the company after more than three years of losses.

Many investors have been waiting for Lampert to form a REIT since he merged Sears and Kmart more than a decade ago. According to Cedrik Lachance, managing director at Green Street Advisors in Newport Beach, California, for small operators of high-quality malls, there is requirement of more deals with Sears.

He mentioned that REITs are rare as investors want to spread risk among multiple tenants. However, they could bite if they see the transaction as a way to compress more value from the Sears properties.

He said, “The big challenge of the single-tenant REIT is the credit quality, of course, of that tenant. In this case, I think it’s universally known that the credit quality of Sears is at best poor, and so buyers of the Seritage REIT will look for a redevelopment angle".

Lampert has sold shaped assets such as the Sears Hometown & Outlet Stores Inc. chain and the Lands’ End brand. He has focused on generating sales online and from loyalty-program members.